As one of the core production sectors of the Vietnam Rubber Group (VRG), the wood industry has played a vital role in the Group’s value-added supply chain. Facing both market challenges and internal production constraints, VRG’s wood subsidiaries have begun to restructure operations, adjust strategies, and transition toward a leaner, more modern, and sustainable model of growth.
Strong Performance from High-Value Product Segments
In 2024, the total revenue of VRG’s wood sector reached over VND 6,047 billion, with an output of more than 1.15 million m³ of various wood products. Notably, MDF products continued to serve as the core driver, exceeding consumption targets and achieving 11% growth year-on-year.
Value-added processed wood also showed remarkable potential with an 18% increase, underscoring expanding opportunities in furniture manufacturing, export, and finished goods. Key companies such as VRG Quang Tri MDF, VRG Kien Giang MDF, Thuan An Wood, and Dong Hoa Wood have emerged as success stories—thanks to strategic technology investments, product innovation, and solid reputations among both domestic and international clients.
For 2025, the sector aims to produce over 1.11 million m³ of wood products, including 1.052 million m³ of MDF, 6,530 m³ of finished wood, 54,900 m³ of rubberwood blanks, and 200 m³ of laminated boards, targeting total sales of 1.089 million m³, revenue of VND 5,944 billion, and pre-tax profit of VND 299 billion.
In the first four months of 2025, VRG’s wood sector produced 370,868 m³ of MDF (35% of the annual plan), 1,846 m³ of finished wood (28%), and 8,023 m³ of blanks (15%), generating VND 1.84 trillion in revenue (31% of plan)—an 11% increase year-on-year—and VND 121.5 billion in pre-tax profit (41% of plan).
Restructuring Toward Efficiency and Sustainability
To address market volatility, raw-material costs, and operational inefficiencies, VRG has launched a comprehensive restructuring program for the wood sector. The Group now clearly classifies subsidiaries by performance and focuses investment in core strengths, particularly MDF production and value-added wood processing.
Underperforming companies are being reorganized through collaboration models, sharing raw-material sources, market access, and technologies. VRG also encourages subsidiaries to adopt flexible production models, co-manufacturing partnerships, and greater investment in finishing and product design, improving profitability and global competitiveness.
These measures are not only improving production efficiency but also laying a solid foundation for long-term adaptation, ensuring VRG maintains its position in the global wood supply chain.
Securing Green Raw-Material Sources and Circular Value Chains
Leveraging the potential of over 31 million m³ of rubberwood available from replantation projects in Laos and Cambodia, VRG is studying the feasibility of building MDF or wood-pulp factories abroad—creating a closed-loop production chain from raw materials to finished goods.
This strategy enables the Group to maximize natural-resource efficiency, meet traceability and sustainable-forest certification (VFCS/PEFC) requirements, and reduce carbon emissions across the value chain.
At the same time, developing certified VFCS/PEFC products and integrating renewable energy sources into manufacturing will help VRG’s wood sector align with international sustainability standards.
Despite ongoing challenges, VRG’s wood industry has shown resilience and adaptability, leveraging internal strengths and strategic coordination among member units. With a clear restructuring roadmap, collective determination, and a focus on green, efficient, and long-term growth, VRG’s wood sector is well-positioned to enter a new phase of sustainable modernization and accelerated development.